7% prevented from moving mortgage due to age

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Saga Equity Release Advice Service has claimed that one in three over 50s still have a mortgage and on average they will need to find £50,000 to own their home outright and be mortgage free.

In addition, one in seven people in their 70s are faced with having to use their weekly pension to pay off what’s owed, instead of using it to enjoy their retirement as they had planned. On average these people have £40,000 left to pay.

The adviser said shopping around for a new mortgage could help people pay it off quicker but around one in three over 50s say they have never tried to renegotiate their mortgage.

Saga said one in 10 over-50s say they are concerned about their lenders maximum borrowing age; indeed, 7% say they have been prevented from moving their mortgage to a more competitive deal because of their age.

Alex Edmans, head of retirement at Saga Personal Finance, said: “Millions of older homeowners have found themselves abandoned by mortgage lenders and stuck in uncompetitive deals because of the unfair age restrictions that many lenders have in place. If these people had access to a better deal they wouldn’t have to pay as much back each month which would leave them with more money to enjoy their retirement.

“For those in retirement struggling to meet their monthly mortgage costs it may be worth considering a lifetime mortgage to help ease the burden of the monthly repayments. This may not be suitable for all, so it is well worth speaking with a specialist adviser, who would consider all alternatives and review whether any state benefits could help provide some relief.

“It is also extremely important that people discuss their options with their family or loved ones and we advise our customers to do this before taking out a lifetime mortgage.”

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